# In the matter of Frontline (NCR) Business Solutions Pvt. Ltd. (IB) 898 (ND)-2020

> NCLT judgment dated 2020-10-06. Citation: TCN-2020-NCLT-00455. M/S. Z-COM INDIA PRIVATE LIMITED, the operational creditor, filed a petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 6 Oct 2020
- **Citation:** TCN-2020-NCLT-00455
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/frontline-ncr-business-solutions-pvt-ltd-ib-898-nd-2020-fa3eb52f

## Summary

### Background

M/S. Z-COM INDIA PRIVATE LIMITED, the operational creditor, filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/S. FRONTLINE (NCR) BUSINESS SOLUTIONS PVT. LTD, the corporate debtor, due to its inability to liquidate its operational debt. The operational creditor claimed an outstanding amount of Rs. 9,37,76,299/- along with interest at 18%, amounting to Rs. 2,11,63,888/-. The corporate debtor raised disputes regarding delays in the supply of goods, claiming that the operational creditor failed to deliver the goods in time, leading to penalties imposed by CSC on the corporate debtor.

## Facts

M/S. Z-COM INDIA PRIVATE LIMITED (Operational Creditor) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 against M/S. FRONTLINE (NCR) BUSINESS SOLUTIONS PVT. LTD (Corporate Debtor) for an outstanding operational debt of Rs. 9,37,76,299/- plus interest. Z-COM is a subsidiary of Z-Com Inc. based in Taiwan, manufacturing wireless networking solutions. FRONTLINE procured goods from Z-COM. Z-COM claimed that FRONTLINE failed to pay the outstanding amount despite reminders. FRONTLINE disputed the debt, citing delays in the supply of goods by Z-COM, which led to penalties imposed on FRONTLINE by CSC. FRONTLINE provided email correspondence to support its claim of delayed supplies. The first invoice was raised on 2018-04-19 and the last

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency & Bankruptcy Code, 2016 is …

**Ratio:** Section 5(6) of the IBC defines 'dispute' as including a suit or arbitration proceedings

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**Reasoning:** The NCLT considered the email exchanges between the parties, which indicated that the

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**Interpretation:** The existence of a genuine dispute, raised before the issuance of a demand

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**Application:** In this case, the email exchanges showed that the corporate debtor had raised

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** M/S. Z-COM INDIA…
- **Respondents:** M/s. Frontline…

## Timeline

- **2018-04-19 — First Invoice…**: The operational creditor raised the…
- **2019-11-06 — Last Invoice…**: The operational creditor raised the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(6) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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